Summary
- Honeywell is a Dividend Challenger with 8 consecutive years of dividend increases. Shares currently yield ~2.3%.
- The share price is ~ 11% below its October peak in the low $160s.
- Strong free cash flow returns on invested capital make Honeywell a good investment candidate.if the valuation makes sense.
my portfolio at the end of 2018 one thing that I wanted to do was to increase my exposure to the consumer staples, consumer discretionary, health care and industrial sector. There's only 4 companies in my portfolio that fall in the industrial sector and they account for roughly 5% of my dividends. Honeywell (HON) is a company that I've long had my eye on but never sat down to truly analyze the company and come up with a valuation.
Honeywell's share price had declined over 22% from its October peak at $161 to less than $125 by late December. Since then the share price, as well as the market overall, has cooled down and rebounded nicely but is still roughly 12% below the October peak. The share price might continue to climb higher from here or it could easily head back lower. Whatever the case may be I wanted to be prepared with a valuation in mind for this excellent company should the markets start going haywire once again.
